Home Tools: Save | Print | E-mail | Most Read | Comment
Energy prices unlikely to rise sharply in near future
Adjust font size:

China's domestic situation determines that its energy prices will not rise significantly in the short term, according to Fu Chengyu, China National Offshore Oil Corporation (CNOOC) chief executive officer.

Fu made the remarks when replying to Rob Morrison, chairman and CEO of Credit Lyonnais Securities Asia (CLSA), who said the effective way for China to raise energy efficiency was to increase its energy prices, which were set at a low level by the government.

"Energy security is indeed one of the challenges China needs to tackle now," said Fu at the Boao Forum for Asia (BFA) annual conference here on Saturday in Hainan, China's southernmost island province.

"But to make policy decisions as whether to raise energy prices, China has to consider a variety of factors, such as its impact on high-flying domestic inflation and the living expense of its low-income people," Fu said.

China froze its electricity prices to prevent the rising costs being transferred to end-users amid the highest Consumer Price Index (CPI) in 11 years. It has also kept low domestic oil prices from rising against international crude prices, and gives refiners subsidies to compensate their loss.

Despite relatively low energy prices, the inflation indicator CPI still rose to 8.7 percent in February, led by a major wave of price increases in pork, eggs and other agriculture products in China. It had considerably pushed up the living expense of ordinary Chinese.

Established in 2001, the BFA is a pan-Asian platform of dialogue for key issues relating to Asia and the world. The theme of the 2008 conference is "Green Asia: moving towards win-win through changes".

(Xinhua News Agency April 13, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
Most Viewed >>
- Slowing US economy may drag down China's GDP by 1%
- China real estate sector likely at crossroads
- Steel exports rebound on widening price gap
- Shanghai Aircraft becomes supplier for Airbus
- No worries to post-Olympic slowdown

April 11-13 Boao Forum for Asia

May 15-17 Shanghai Women's Forum Asia

Dec. 12-13 Beijing
China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?